Malaysian Land Registry

Updated on Thursday 01st August 2019

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The Land Registry in Malaysia also referred to as the Land Office, receives all applications to register a newly purchased or transferred property, after the initial deal on the sale has been concluded.

Land titles need to be registered with the Land Registry in order to conclude the ownership transfer process and allow the new land owner to have full ownership and rights. The experts at our law office in Malaysia can help you during this process, if you cannot be present in the country or if you need additional information about the documents needed to be registered and how they are submitted.


Property registration in Malaysia


A mandatory step after concluding a property sale agreement is to register the property with the Land Registry. The actual registration takes place after the applicant submits the sale and purchase agreement with the Stamp Office. At this stage, the applicant must also submit a form, pay the stamp duty and make sure that the valuation of the property was made in accordance with the principles set forth by the Valuation and Property Services Department.

The actual registration stage takes place after the processing phase when the form, stamp duty, and property valuation are submitted. Upon registration, the transfer of the property is made. The following documents are submitted to the Land Registry for registration purposes:
-    the original Document of Title;
-    copies of the buyer’s and the seller’s identification documents;
-    copies of the documents that attest the cessation of any rent on the property;
-    proof of payment of the registration fee.

Our lawyers in Malaysia can help you submit these documents and they can represent your best interests during the sale/purchase transaction if you are a foreign investor in the country interested in purchasing real estate.

We invite you to watch the following video on property registration: 

The property registration steps in Malaysia


Investors or individuals who are interested in property purchase in Malaysia can follow this simple guideline described by our team of attorneys in Malaysia
  1. purchase the property: this can be purchased from the property developers or directly from the owner.
  2. the processing stage: the property is valuated, the stamp duty is paid and submitted with the stamp duty Form 14A.
  3. registration stage: this is when the transfer of the property is actually registered with the Land Office.
  4. collection process: the final stage involves receiving the printed new title and notice.

After the registration process is complete, the name of the new owner will be included in the newly issued Document of Title for the Malaysian property. If all the documents are in order, the buyer of the property can receive the new Document within one working day.

These stages are for registering a property with the Kuala Lumpur Land Registry for a landed property with individual title. Our team of lawyers in Malaysia can give you more information about this situation.

When the property is acquired without an individual title, the process is referred to as the assignment of property. The registration is not required for properties without individual titles. This is because the Land Office does not hold records of individual properties. This takes place only after the individual titles are issues. When individuals wish to sell or change the ownership of a property without an individual title, the process is handled by means of a Deed of Assignment. 

The Deed of Assignment is a legal instrument that is used as a manner of transferring the rights from the seller or the assignor to the buyer or the assignee. This document is dully executed and needs to be stamped. Once the process is complete, the Assignee owns the rights as the title of the property. However, it is important to note that in this case the process is not registered with the Land Office.

The team of experts at our law firm in Malaysia can provide individuals with more information on this matter as well as the general information that is included in the Deed.
 

Individual title search for properties in Malaysia 


A step that takes place during the property purchase process in Malaysia is the private land search on the individual title. This private land search is important because now the future owner or the interested buyer will be able to receive updated information on the status of the land.

The information is an extract from the Register Document of Title or RDT and it may include additional information on the property, such as existing charges. In order for the search to be possible, the lawyer of the buyer needs to fill in the Private Land Search Form and submit it to the Kuala Lumpur Land Registry together with a fee of 30 RM per each title search.  
 

Additional information on property and land transactions in Malaysia


Land in Malaysia can be transferred to a Malaysian citizen over the age of 18 and to non-nationals and foreign companies if they have received an approval from the State Authority. The registration is not required in case of properties without individual titles.
 
The role of a lawyer during the sale of a property is important as the party who is buying the property will rely on an expert, such as one of our attorneys in Malaysia, for the following processes:
 
  • to perform a private land search with the Land Office for the individual title of the property;
  • to perform a bankruptcy search on the seller;
  • to perform a wind-up search on the seller if the seller is a company.
 
The bankruptcy search for the owner of the property is performed with the Insolvency Department of Malaysia. A fee applies for this search and if it is determined that the owner is bankrupt, then the Official Assignee’s approval will be required.
 
The winding-up search is performed for both the buyer and the seller. There are limitations for the buyer as well, both in the case of the company and in the case of the individual. For example, if it is determined that the buyer is bankrupt, he will be prohibited from concluding the sale agreement and thus will not be able to purchase any property in Malaysia. 
 
The buyer will wish to work with a lawyer in order to make sure that the terms of the transactions are favorable ones and that hos rights are being observed. 
 
Apart from these services related to due diligence, investors or individual buyers can also rely on our team of lawyers in Malaysia for more information on how they can obtain a bank loan to finance their property investment. We can provide services for residential property purchases as well as commercial property purchases, as needed by our clients.
 
The property market in Malaysia is a developed one, and it has slightly increased in 2018. The following statistics were released by the Ministry of Finance, the Department of Valuation and Property Services:
 
  • the property sector had a total of 313,700 transactions;
  • the total value of these transactions was 140.33 billion RM;
  • residential property continues to hold the highest percentage of the transactions, with 62.9% while agricultural property had a share of 21.5%. 

For more information on how to purchase property in Malaysia and the registration procedure with the Land Office, please contact our law firm in Malaysia.